Account aggregators have become extremely popular in recent years with the rise of services like Mint and Personal Capital. Even though the demand and popularity of aggregators is increasing rapidly, it is still not common knowledge! Read on to learn about account aggregators and stay up to date.
What is an account aggregator?
Account aggregation or financial data aggregation is a process by which data from several or all of a person's or household's financial accounts is collected in one place. In terms of online banking, the user can receive site a service that selects a home page where account holders can view information on all their checking, savings, CD and brokerage accounts. Personal finance software, apps, and online services like Quicken or Mint provide such account aggregation services and are therefore called RBI account aggregator.
How does an account aggregation work?
Account aggregation generally occurs only within a single financial institution, but certain assets held by the user outside a financial institution may be included if the account holder has agreed to it. Personal finance services offer clients the option to 'aggregate' details of all their savings, checking, brokerage accounts, as well as other financial assets in all the institutions in which users have their accounts. These services generally require you to provide your account credentials (username and password) if you want to take advantage of the facility. Using the information provided, download the data for each account to include in the aggregation. Often, account aggregation software can only access balance information and transaction records. Also, for security reasons, many aggregation services do not allow users to transact from the aggregation portal.
In addition to the services mentioned, some software, often used by professional financial advisors on behalf of their clients, gathers additional data on net worth, such as recent home value estimates, classifies cash inflows and outflows, and liabilities for debt in the financial sector. image.
Benefits of account aggregation
General Description: The main use is to obtain an overview of the financial situation of the company or individual. It's the "tidy desk" that keeps you up to date and in control.
Planning: Account aggregation can be used as a financial planning and management tool by providing simplified account access for account holders, especially for families with multiple financial goals.
Usage patterns: Helps keep track of our own patterns. If used to track a customer's patterns, it detects defaults quickly and offers personalized offers that capture their attention and build customer loyalty.
Real-time: It is constantly updated and offers new updates on demand, which is humanly impossible to do at the fast speed that the aggregator does.
Process automation: It is easy to forget to enter data (a new transfer), make a mistake when making an account balance, etc. The automation of processes offered by this type of API minimizes the errors and carelessness that anyone can commit, simplifying financial control.
Account aggregators in India
Indian banks are also preparing to launch bank account aggregator. Axis Bank, Bajaj Finserv, ICICI Bank, IDFC FIRST Bank, HDFC Bank, Indusind Bank, Kotak Mahindra Bank and State Bank of India have been working to adopt the account aggregator (AA) framework. The first account aggregator to receive its license in India is Onemoney. Not far behind Cams Finserv, FinSec AA Solutions and Cookiejar Technologies have received operating licences. An account aggregator ecosystem, as envisioned by the RBI for India, would be a platform for financial services companies to communicate with the consumer and seek consent to use their personal data to optimize their product offerings.
About Us
Licensed by RBI, the CAMSfinserv platform enables rapid, secure and consent-based sharing of financial asset information. CAMSfinserv platform brings high standards in data integrity and security to help unlock the value of financial asset information.
Website - https://www.camsfinserv.com/